Disaster Recovery Plan


A Disaster Recovery Plan (DRP) is a documented, structured approach containing instructions for response, recovery, and resuming operations after a network or information systems disaster. It is specifically tailored to minimize business interruptions and mitigate potential losses in case of IT infrastructure malfunction or damage. The plan usually includes processes like data backup, recovery procedures, routine check-ups, and regular updates.


The phonetics for “Disaster Recovery Plan” are:Disaster: /dɪˈzɑːstər/Recovery: /rɪˈkʌvəri/Plan: /plæn/

Key Takeaways

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  1. Importance of Planning: A proper Disaster Recovery Plan ensures that a business can continue operating and minimize downtime in the face of a disaster. It helps in maintaining the continuity of operations and resuming regular business practices seamlessly after a disaster.
  2. Regular Testing and Updates: The Disaster Recovery Plan should be updated and tested on the regular basis in order to address changes in the organization’s processes, technologies, and other factors. This ensures the plan is always relevant and can be initiated effectively when necessary.
  3. Clarification of Roles and Responsibilities: A Disaster Recovery Plan should clearly outline the precise roles and responsibilities for each member of the team. This ensures that everyone knows what they are supposed to do to help the organization recover as quickly as possible.

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A Disaster Recovery Plan (DRP) is crucial in the technology industry because it ensures business continuity in the event of a crisis. Technology infrastructure is a critical component for essentially all business operations today, and any damage or disruption can lead to significant financial losses or even halt operations altogether. A DRP outlines the procedures to restore hardware, applications, and data in a swift and methodical manner after a disaster. This includes the strategies to combat potential cyber-attacks, system crashes, or natural disasters. By having a reliable and tested DRP in place, businesses can effectively minimize downtime, mitigate risks, and safeguard vital information which is crucial to maintaining client trust and overall business reputation.


The principal purpose of a Disaster Recovery Plan (DRP) is to ensure a swift recovery of an organization’s crucial systems and business operations following a disruption or disaster. The scope of disasters includes natural calamities like fires and floods, or man-made disruptions such as cyber attacks and equipment failure. DRP is a significant component of business continuity planning aiming at reducing downtime and maintaining continuity of business operations.A DRP serves to detail the procedures, resources and steps to be taken to rapidly restore normal functioning. This involves recovering lost data, reallocating workloads to undamaged systems, accessing backup systems, and pin-pointing ways to mitigate the impact of the disruption on the business. This plan is customized according to an organization’s specific needs, nature of the business, and the potential disasters they might face. Regular testing and updating the DRP are crucial to keep up with changing business requirements or potential threats.


1. Hurricane Katrina: In 2005, this natural disaster hit many areas hard, resulting in significant physical and data losses. However, businesses with a Disaster Recovery Plan were able to recover faster. For instance, some businesses had off-site backups of their crucial data. After the hurricane, they could restore their data and get their businesses running again.2. Amazon Web Services (AWS) Outage: In 2017, AWS had a large-scale outage that affected many businesses globally. Companies with Disaster Recovery Plans in place could swiftly switch their operations to other cloud servers or on-premise infrastructures until AWS restored its services.3. Fukushima Nuclear Disaster: In the aftermath of the 2011 earthquake and tsunami, the nuclear plant disaster in Fukushima resulted in catastrophic consequences. Although it wasn’t strictly an IT issue, it showed the importance of having a Disaster Recovery Plan. Companies like Sony had plans in place which included moving manufacturing to unaffected locations and diversifying supply chain sources, allowing them to rebound within a few months.

Frequently Asked Questions(FAQ)

**Q1: What is a Disaster Recovery Plan (DRP)?**A: A Disaster Recovery Plan (DRP) is a structured and documented set of procedures that guide an organization to successfully recover and protect its IT infrastructure within the event of a disaster. The purpose is to minimize downtime and data loss.**Q2: Why is the Disaster Recovery Plan important?**A: The Disaster Recovery Plan is important as it helps to minimize downtime, data loss, and financial damage in the event of an emergency. It’s an important part of risk management for any business where IT systems are critical to functioning.**Q3: What components make up a good Disaster Recovery Plan?**A: A good Disaster Recovery Plan primarily includes the identification of critical IT systems and data, a clear step-by-step recovery procedure, roles and responsibilities of the disaster recovery team, communication plan, and regular testing and updating of the plan.**Q4: How often should a Disaster Recovery Plan be updated?**A: Changes in the organization, new threats, lessons from tests, and many other factors may affect the validity of the DRP. Hence, it should be updated regularly, usually every 6 months to a year or whenever major changes happen within the organization.**Q5: What is the difference between Disaster Recovery Plan and Business Continuity Plan?**A: While both plans are components of the overall plan to recover from a disaster, the main difference is their objectives. The Disaster Recovery Plan focuses on the recovery of critical IT systems and functions after a disaster, while the Business Continuity Plan focuses on keeping all aspects of the business functioning in the midst of a disruptive event.**Q6: What types of disasters does DRP cover?**A: A DRP covers all types of disasters that could impact IT services, including both natural disasters like floods, fires, and hurricanes, and man-made disasters such as cyber attacks, hardware failures, and human error.**Q7: Does every business need a Disaster Recovery Plan?**A: While the scale and complexity of a DRP may vary, every business that relies on IT services to function should have some form of a Disaster Recovery Plan to safeguard their business functions. **Q8: How is a Disaster Recovery Plan tested?**A: A DRP can be tested through simulation, tabletop exercises, and full-scale drills. It’s essential to document the results and adjust the plan based on the outcome of the tests.

Related Finance Terms

  • Business Continuity Planning
  • Data Backup
  • Recovery Point Objective
  • Recovery Time Objective
  • Fault Tolerance

Sources for More Information


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